20,000 City jobs threatened

As
many as 20,000 City of London jobs will have been lost by next year because of
falling stock markets a report has warned.

The
report by the Centre for Economics and Business Research estimates that 10,000
jobs at firms in the City will be lost between 2000 and 2002, with 10,000
support staff and other workers also facing unemployment.

The
CEBR believes the scaling down of City staffing levels will happen as firms
readjust after strong growth in recent years.

It
also predicts that the stock market downturn could knock three per cent off
London house prices and 5.6 per cent off the cost of commercial rents.

The
study says that reduced trading activity and fewer takeover deals will mean the
number of City type jobs in London’s financial service sector will fall from
302,500 last year to 292,600 next year.

But
the CEBR advises businesses the downturn is unlikely to become a full-blown
recession.

The
report states, “These numbers should be seen as predicting a mild setback after
a strong boom, rather than doom and gloom.”